### Summary
China's fiscal revenue rose 11.5% in the first seven months of 2023, but at a slower pace than the previous six months, indicating a loss of economic momentum.
### Facts
- 💰 China's fiscal revenue increased by 11.5% in the first seven months of 2023.
- 💸 Fiscal expenditure grew by 3.3% to 15.2 trillion yuan ($2.10 trillion).
- 📉 In July, fiscal revenue only rose 1.9% year on year, slower than the previous month's increase.
- 📉 Fiscal expenditure fell 0.8% in July, narrowing the decline compared to the previous month.
- 🌍 China's economy grew at a sluggish pace in the second quarter due to weak demand domestically and internationally.
- 📉 The consumer sector in China experienced deflation in July, with analysts predicting persisting price stagnation for the next six to 12 months.
China's factory activity is expected to contract for a fifth consecutive month in August due to weak demand, posing challenges to the country's economic recovery.
Consumer spending in China rebounded in August, with all categories, including apparel, automotive, food, furniture, appliances, and luxury, experiencing increased sales compared to July, according to a survey by the China Beige Book. Retail sales in July rose by 2.5% year-on-year, raising concerns about China's economic growth, but the August survey showed a surge in spending, particularly in the services sector, which saw continued strength in travel and hospitality. Additionally, corporate borrowing increased as the cost of capital declined, indicating a boost in business activity. However, China's property sector continued to worsen, with house prices barely growing and home sales declining.
China's factory activity contracted for the fifth consecutive month in August, indicating that the slowdown in the country's economy has not yet reached its lowest point.
China's manufacturing activity contracted for a fifth consecutive month in August, putting pressure on officials to provide support to boost economic growth amid weak domestic and international demand.
Investors await the release of U.S. nonfarm payrolls and a barrage of manufacturing data to close out a week of mixed economic reports, while China's private-sector survey shows factory activity expanding despite ongoing economic challenges.
China's factory activity unexpectedly improved in August, with supply, domestic demand, and employment showing signs of improvement, suggesting that efforts to revive economic growth might be having some effect.
China's services activity expanded at its slowest pace in eight months in August, as weak demand and stimulus measures failed to revive consumption, according to a private-sector survey.
China's services sector experienced a slowdown in business activity, resulting in the lowest level in eight months, as weaker foreign demand and sluggish overseas orders impacted consumption, despite economic stimulus efforts.
China's exports are expected to contract at a slower pace in August, with a projected fall of 9.2%, as manufacturers continue to face pressure due to weak overseas demand and a shrinking labor market.
China's passenger vehicle sales experienced growth in August, driven by discounts and tax breaks on environmentally friendly and electric cars, despite a weak economy, and Tesla's share of the Chinese electric vehicle market nearly doubled.
China's retail sales and industrial production exceeded expectations in August, with retail sales growing by 4.6% and industrial production growing by 4.5%, but fixed asset investment lagging behind at 3.2%, indicating potential instability in the external environment.
China's factory output and retail sales grew at a faster pace in August, but declining investment in the property sector poses a threat to the country's economic recovery.
China's factory activity expanded for the first time in six months in September, indicating that the country's economy is beginning to stabilize after a period of decline.
China's factory and services sectors experienced slower growth in September due to weak external demand, despite an increase in output, with the property slump, falling exports, and high youth unemployment clouding the economic outlook.
Japan's factory activity fell at the fastest pace in seven months in September, reflecting weakening global economic conditions and a decline in new export orders.
India's factory activity expanded at a slower pace in September, but strong demand and business confidence remained high, despite increased inflationary pressures.
Japan's service sector experienced the slowest expansion in September since the beginning of the year, as shown by a private survey, indicating potential challenges for the country's economic recovery heavily reliant on domestic demand.
The Chinese economy is predicted to grow about 5.7 percent in the fourth quarter, surpassing the 5 percent annual growth target, driven by unleashed services consumption potential, accelerated infrastructure investment, and growth in high-tech and private manufacturing investment, according to the BOC Research Institute.
Car sales in China increased 4.7% in September, driven by discounted and new models ahead of holidays, with new energy vehicle sales growing 22.1% and accounting for 36.6% of total car sales.
China's exports decline improved modestly in September, with the pace slower than the previous month, while imports remained largely unchanged, and analysts anticipate more support will be needed as external demand is expected to stay weak.
China's exports and imports declined at a slower pace in September, indicating a gradual stabilization in the economy, although challenges remain in the face of deflationary pressure, a property crisis, global slowdown, and geopolitical tensions.
Production at U.S. factories increased more than expected in September, suggesting strong momentum for the economy despite strikes in the automobile industry curbing motor vehicle output.
Despite a prolonged decline in overseas orders, Taiwan's actual exports experienced growth in September due to increased demand for semiconductor chips related to AI, signaling a slow turnaround in the offshore markets for hi-tech hardware.
Japan's factory activity contracted for the fifth consecutive month in October, while the service sector experienced its slowest growth this year, indicating growing uncertainty about the country's economic outlook.
